This summary of decisions of the Public Sector Accounting Board (PSAB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects, which might change after further deliberations by PSAB. Decisions to publish exposure draft and Handbook material are final only after a formal ballot process. For more information, please contact Michael Puskaric, Director at PSAB at [email protected]
Due Process Review
PSAB reviewed proposed changes to its governing documents (i.e., Terms of Reference, Statement of Operating Procedures, and Due Process Manual).
The Board will continue to discuss the changes at its December meeting.
Employee Benefits
PSAB discussed feedback on the proposed discount rate guidance in the Exposure Draft “Employee Benefits, Proposed Section 3251” and considered options to simplify the assessment of a plan’s funding status.
A revised version of the standard is likely to be presented for the Board’s approval in March 2024. To align with PSAB’s Standard-Setting Due Process Manual, if the Board concludes significant changes have been made to the guidance proposed in the exposure draft, re-exposure of the revised standard may be required. This decision will be made at a future meeting.
Intangible Assets
The Board approved the Intangible Assets project proposal, including an accounting guideline to provide guidance on cloud computing arrangements (CCAs). PSAB reviewed and provided feedback on the approach and timelines to incorporate guidance on CCAs as part of the Intangible Assets project.
Staff will first work to develop an intangible assets standard for the public sector by applying PSAB's International Strategy based on principles in IPSAS 31, Intangible Assets. Once the intangible asset standard has been exposed for comments, staff will then proceed to develop guidance for CCAs in the form of an accounting guideline.
Government Not-for-Profit Strategy
PSAB approved the Exposure Draft, “Tangible Capital Assets, Proposed Amendments to Section PS 3150” and accompanying Basis for Conclusions. The Board expects to issue the document in December 2023 with comments due by April 2024. This comment period takes into consideration winter holidays.
This project is the first in a series of standard-level projects to implement the Board’s GNFP Strategy. It focuses on proposing amendments to Section PS 3150, Tangible Capital Assets, as a result of reviewing Section PS 4230, Capital Assets Held by Not-for-Profit Organizations, and Section PS 4240, Collections Held by Not-for-Profit Organizations. The proposed amendments will be applicable to all public sector entities. For those entities applying the PS 4200 series, Sections PS 4230 and PS 4240 will be withdrawn from the CPA Canada Public Sector Accounting (PSA) Handbook once Section PS 3150 is applied.
All interested and affected parties are encouraged to provide feedback on these proposals once they are issued in December. Staff will host a webinar and ask for input using Connect.FRASCanada.ca, the online community platform that makes providing feedback easier.
Monitor the GNFP Capital Assets project page for updates.